Solana Price Prediction: SOL Slumps 9% As Trump Coins Cause Solana Network Congestion Issues This New Crypto Is Designed To Fix

The Solana price slumped 9% in the past 24 hours to trade at $236.88 as of 02:36 a.m. EST on trading volume that dropped 51% to $18.6 billion.

The Solana blockchain faced significant network congestion on Monday due to the rising popularity of Donald Trump-themed meme tokens, TRUMP and MELANIA. Their respective launches over the weekend have created an unprecedented surge in transaction volumes on the Solana network.

The overwhelming network activity led to technical disruptions for Jito Labs, a key infrastructure provider for the Solana network. As MELANIA and TRUMP continue to encounter a surge in trading volume, Solana’s ecosystem is still trying to recover.

Solana On A Price Correction

SOL price action highlights a significant bullish breakout from a falling channel pattern. This pattern, marked by falling resistance and support lines, typically indicates a bullish reversal once broken. 

Around early January 2025, the Solana price surged above the channel’s resistance, signaling a strong upward move within a parabolic curve.

Following the breakout, the price of SOL rallied dramatically, peaking at a new all-time high (ATH) at $293.31, according to GeckoTerminal data . 

However, this rapid climb resulted in a pullback, as evident by the red candles, with SOL retracing back to $236.88. The pullback is normal after a steep rally and is likely a result of traders taking profits.

The Golden Cross, where the 50-period Simple Moving Average (SMA) crossed above the 200-period SMA around 200.69 on the 12-hour chart, further confirmed a longer-term bullish trend. This is a widely recognized indicator of bullish momentum and suggests that SOL has entered a positive growth phase.

Meanwhile, the Relative Strength Index (RSI) stands at 55.93, indicating neutral to slightly bullish momentum. After being in the overbought zone during the rally, the RSI has cooled off, suggesting a healthy correction rather than a reversal.

The Moving Average Convergence Divergence (MACD) is also positive, with the MACD line (3.79) above the signal line (11.91), supporting the bullish outlook within the 12-hour timeframe. 

SOL/USD Chart Analysis Source: GeckoTerminal

Can SOL Recover?

The overall trend for SOL remains bullish as long as the price stays above the 50-period and 200-period SMAs. If bullish momentum resumes, the next target lies at $260, with $293 being a significant hurdle. 

Additionally, if the Solana price holds the $220-$230 range and buyers regain strength, another leg up toward $300 is plausible.

On the downside, strong support exists near $220, aligning with the 50-period SMA, and further at $200, near the 200-period SMA.

As the SOL price slumps, investors are buying into a new layer-2 Solana meme coin called Solaxy (SOLX) . According to 99Bitcoins, a popular crypto YouTube channel with over 722K subscribers, Solaxy has the potential to soar 100X after its launch.

A Promising Alternative To Solana

Solaxy has raised over $12.8 million in a month, showcasing remarkable demand for the innovative project.

Solaxy is a Solana layer-2 solution that is designed to enhance speed, scalability, and efficiency within the Solana ecosystem. The project addresses key issues such as network delays and transaction failures while simultaneously leveraging Solana’s inherent strengths.

The project also provides an optimized user experience tailored to the growing demands of the blockchain industry while focusing on performance and customization.

Additionally, Solaxy bridges Solana with Ethereum, combining the best features of two of the most prominent networks in the crypto space. 

By leveraging Ethereum’s liquidity and security alongside Solana’s speed and scalability, Solaxy will create a robust ecosystem tailored to accommodate the growing demands of the decentralized finance (DeFi) and meme coin communities.

Buyers of the SOLX token can also earn passively on the platform, with a flattering 294% APY currently on offer.

Investors interested in participating in the presale can visit the official Solaxy website to buy SOLX tokens at $0.001608 each using BNB, ETH, USDT, or a bank card.

Buy SOLX here before an imminent price hike in less than 24 hours to secure the best deal.

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